Have no idea with opportunities? UBS & Neuberger Berman: Just get into China
Ubs said Chinese stocks were "overadjusted" : investors overreacted because of limited visibility into future policy, fragile risk sentiment and an imperfect understanding of substitutability.
It has found no significant difference in multiples between Hong Kong and U.S. -listed Chinese concept stocks, and that the impact of valuation on Chinese concept stocks in the long run is fairly limited.
Besides, Neuberger Berman sees opportunities next year for companies that were pressured this year by policy, market sentiment or fundamentals.
For the following reasons:
1) Valuations have become quite attractive after the overreaction.
2) As growth slows, policy may change. Supporting policies that continue to be introduced will be constantly revised.
3) Even with the negative impact of this year, quality companies in these sectors are adjusting and growing;
When all of these things change, the fundamentals of manufacturing, consumption, health care could all reverse and there will be opportunities for investment in the next few years.
$TENCENT (00700.HK)$ $Tencent (TCEHY.US)$ $Alibaba (BABA.US)$ $BABA-W (09988.HK)$ $NIO Inc (NIO.US)$ $MEITUAN-W (03690.HK)$ $Meituan ADR (MPNGY.US)$ $PDD Holdings (PDD.US)$ $JD.com (JD.US)$ $CHINA VANKE (02202.HK)$ $WUXI APPTEC (02359.HK)$ $WUXI BIO (02269.HK)$ $HEARTCARE-B (06609.HK)$ $KUAISHOU-W (01024.HK)$ $Hang Seng TECH Index (800700.HK)$
For the following reasons:
1) Valuations have become quite attractive after the overreaction.
2) As growth slows, policy may change. Supporting policies that continue to be introduced will be constantly revised.
3) Even with the negative impact of this year, quality companies in these sectors are adjusting and growing;
When all of these things change, the fundamentals of manufacturing, consumption, health care could all reverse and there will be opportunities for investment in the next few years.
$TENCENT (00700.HK)$ $Tencent (TCEHY.US)$ $Alibaba (BABA.US)$ $BABA-W (09988.HK)$ $NIO Inc (NIO.US)$ $MEITUAN-W (03690.HK)$ $Meituan ADR (MPNGY.US)$ $PDD Holdings (PDD.US)$ $JD.com (JD.US)$ $CHINA VANKE (02202.HK)$ $WUXI APPTEC (02359.HK)$ $WUXI BIO (02269.HK)$ $HEARTCARE-B (06609.HK)$ $KUAISHOU-W (01024.HK)$ $Hang Seng TECH Index (800700.HK)$
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